Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


QIFU TECHNOLOGY INC

Nasdaq / Financials / Consumer Finance

Fundamental Rating

8

QFIN gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. Both the health and profitability get an excellent rating, making QFIN a very profitable company, without any liquidiy or solvency issues. QFIN is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make QFIN suitable for value and quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year QFIN was profitable.
In the past year QFIN had a positive cash flow from operations.
In the past 5 years QFIN has always been profitable.
In the past 5 years QFIN always reported a positive cash flow from operatings.
QFIN Yearly Net Income VS EBIT VS OCF VS FCFQFIN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

1.2 Ratios

With an excellent Return On Assets value of 13.01%, QFIN belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
The Return On Equity of QFIN (25.90%) is better than 86.27% of its industry peers.
With an excellent Return On Invested Capital value of 18.81%, QFIN belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QFIN is significantly above the industry average of 9.32%.
The 3 year average ROIC (16.14%) for QFIN is below the current ROIC(18.81%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.01%
ROE 25.9%
ROIC 18.81%
ROA(3y)10.78%
ROA(5y)12.79%
ROE(3y)22.26%
ROE(5y)28.34%
ROIC(3y)16.14%
ROIC(5y)20.6%
QFIN Yearly ROA, ROE, ROICQFIN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100

1.3 Margins

The Profit Margin of QFIN (36.49%) is better than 98.04% of its industry peers.
QFIN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 43.86%, QFIN belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
In the last couple of years the Operating Margin of QFIN has grown nicely.
QFIN has a Gross Margin of 83.10%. This is amongst the best in the industry. QFIN outperforms 80.39% of its industry peers.
QFIN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 43.86%
PM (TTM) 36.49%
GM 83.1%
OM growth 3Y2.45%
OM growth 5Y6.92%
PM growth 3Y1.64%
PM growth 5Y6.1%
GM growth 3Y-1.31%
GM growth 5Y-1.19%
QFIN Yearly Profit, Operating, Gross MarginsQFIN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QFIN is creating value.
Compared to 1 year ago, QFIN has less shares outstanding
The number of shares outstanding for QFIN has been reduced compared to 5 years ago.
Compared to 1 year ago, QFIN has a worse debt to assets ratio.
QFIN Yearly Shares OutstandingQFIN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
QFIN Yearly Total Debt VS Total AssetsQFIN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

An Altman-Z score of 3.20 indicates that QFIN is not in any danger for bankruptcy at the moment.
The Altman-Z score of QFIN (3.20) is better than 86.27% of its industry peers.
The Debt to FCF ratio of QFIN is 0.15, which is an excellent value as it means it would take QFIN, only 0.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.15, QFIN belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that QFIN is not too dependend on debt financing.
QFIN has a better Debt to Equity ratio (0.06) than 88.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.15
Altman-Z 3.2
ROIC/WACC2.54
WACC7.4%
QFIN Yearly LT Debt VS Equity VS FCFQFIN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

QFIN has a Current Ratio of 2.45. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN's Current ratio of 2.45 is fine compared to the rest of the industry. QFIN outperforms 74.51% of its industry peers.
A Quick Ratio of 2.45 indicates that QFIN has no problem at all paying its short term obligations.
QFIN has a Quick ratio of 2.45. This is in the better half of the industry: QFIN outperforms 74.51% of its industry peers.
Industry RankSector Rank
Current Ratio 2.45
Quick Ratio 2.45
QFIN Yearly Current Assets VS Current LiabilitesQFIN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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6

3. Growth

3.1 Past

QFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.05%, which is quite impressive.
QFIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
Looking at the last year, QFIN shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
QFIN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.24% yearly.
EPS 1Y (TTM)57.05%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%91.05%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%-0.29%

3.2 Future

QFIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.23% yearly.
The Revenue is expected to grow by 8.48% on average over the next years. This is quite good.
EPS Next Y23.67%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
EPS Next 5YN/A
Revenue Next Year7.53%
Revenue Next 2Y7.44%
Revenue Next 3Y7.5%
Revenue Next 5Y8.48%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
QFIN Yearly Revenue VS EstimatesQFIN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
QFIN Yearly EPS VS EstimatesQFIN Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 20 40 60

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.70, which indicates a rather cheap valuation of QFIN.
Compared to the rest of the industry, the Price/Earnings ratio of QFIN indicates a somewhat cheap valuation: QFIN is cheaper than 76.47% of the companies listed in the same industry.
QFIN is valuated cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.22 indicates a rather cheap valuation of QFIN.
Based on the Price/Forward Earnings ratio, QFIN is valued a bit cheaper than 78.43% of the companies in the same industry.
QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.7
Fwd PE 6.22
QFIN Price Earnings VS Forward Price EarningsQFIN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 86.27% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QFIN indicates a somewhat cheap valuation: QFIN is cheaper than 64.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.03
EV/EBITDA 4.21
QFIN Per share dataQFIN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

QFIN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
QFIN has an outstanding profitability rating, which may justify a higher PE ratio.
QFIN's earnings are expected to grow with 16.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)0.39
EPS Next 2Y18.86%
EPS Next 3Y16.24%

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4

5. Dividend

5.1 Amount

QFIN has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
QFIN's Dividend Yield is a higher than the industry average which is at 4.40.
QFIN's Dividend Yield is a higher than the S&P500 average which is at 2.41.
Industry RankSector Rank
Dividend Yield 2.98%

5.2 History

QFIN has been paying a dividend for over 5 years, so it has already some track record.
QFIN has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
QFIN Yearly Dividends per shareQFIN Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

20.16% of the earnings are spent on dividend by QFIN. This is a low number and sustainable payout ratio.
DP20.16%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
QFIN Yearly Income VS Free CF VS DividendQFIN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B
QFIN Dividend Payout.QFIN Dividend Payout, showing the Payout Ratio.QFIN Dividend Payout.PayoutRetained Earnings

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